An ex-Uber employee is going after the $37 billion device upgrade market with his new startup
Jamon Rahn/LinkedIn
The startup, Upgraded.io, works out how much your current device will be worth at the time you want to upgrade and deducts that figure from the anticipated RRP of the new device. It then charges the difference over a period of several months.
The startup - founded by Jamon Rahn, who was hired by Uber to grow the company's business in Singapore - aims to help customers upgrade their smartphones, tablets, and other devices with less hassle and less cost.
"In 12 months the devices you have now will still have value but you'll put it into your closet and throw away that value," said Rahn. "We give you that value up front. We say this phone will be worth X and all you do is pay in the difference."
The used phone market is worth $17 billion (£12.9 billion), according to a Deloitte study, while Rahn says he's going after a $37 billion (£28.1 billion) market because he's focusing on other devices beyond smartphones.
Having just completed the Y Combinator accelerator course in Silicon Valley, Upgraded.io is now looking to expand from the US and into Europe and Asia, possibly with the help of funding from investors that attend the Y Combinator Demo Day on Tuesday. It'll no doubt hope to follow in the footsteps of Y Combinator alum such as Airbnb, Dropbox, and Stripe.
"A €900 (£775) smartphone would cost €50 (£43)-€60 (£52) a month and allow the customer to upgrade to a new one every year," explained Rahn, who claims that his data science team can predict the future value of devices with great accuracy by looking at previous device roll outs.
Based on those numbers, the customer would pay €600 (£517)-€720 (£620) for a €900 (£775) device over a 12-month period. They'll also have to trade in their old handset when they want the new device.
Upgraded.io is already live in the US and it will go live in two Scandinavian countries this autumn, according to Rahn, who said he's on the brink of signing deals with a number of large European retailers. It's unclear at this stage when the UK launch will be.
NOW WATCH: The best way to use incense in 'Pokémon GO'
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- Vegetable prices to remain high until June due to above-normal temperature
- RBI action on Kotak Mahindra Bank may restrain credit growth, profitability: S&P
- 'Vote and have free butter dosa': Bengaluru eateries do their bit to increase voter turnout
- Reliance gets thumbs-up from S&P, Fitch as strong earnings keep leverage in check
- Realme C65 5G with 5,000mAh battery, 120Hz display launched starting at ₹10,499